Digitalization in a Ferrari and Procurement

🚗 Digitalization in a Ferrari and Procurement

Apart from the speed, there are certainly similarities, aren’t there?

YES, Procurement must learn a lesson from a recent Ferrari announcement (July):

⚠️ Ferrari is putting a hard stop when it comes to developing its infotainment software; Ferrari figured out it can’t keep up with Apple and Google and will not further develop its own navigation and infotainment system. Apple CarPlay and Android Auto offer better UX and generally smartphone apps are anyway always up to date.

What it means for Procurement:
⚡Building your digital solutions makes little or no sense: But why are there still Procurement Managers & IT Departments who believe they have to develop and code Digital Procurement solutions, despite there now being hundreds of systems for almost every challenge in Procurement?

⚡It is 2024: Why are there Procurement Managers who still firmly claim that many digital solutions, especially eProcurement platforms, are “not yet ready to handle their challenges”?

A few thoughts after 22 years in the Digital Procurement space:

📌We can draw from dozens of proven and running solutions and quickly realize success with mature solutions that providers and customers continuously develop. Regular enhancements included. This applies to all industries, company sizes, and budgets. There is absolutely no reason to do nothing!
📌After bumpy years (the early 2000s) where the scope of functions took precedence over UI/UX and user experience, we now have user-friendly, intuitive interfaces that focus on people rather than the system and they learned and copied much from well-known consumer platforms (e.g. Amazon)
📌Digitalization comprehensively expands the Procurement toolbox (“value levers”)
📌Interfaces (API) are also manageable (time, costs, complexity)
📌Plug&Play in the context of Procurement hubs is the future of system landscapes in Procurement. Many solution providers complement each other perfectly and collaborate (e.g. Risk and Sustainability and Compliance Management)

⚠️If you are a Procurement Leader with no digital ambition and initiatives you might also jeopardize the digitalization efforts of the entire company. In running a large network of business partners, Procurement must be a promoter or inhibitor of a company-wide digitalization approach. Choose your role wisely!

⚠️By the way: Digital procurement is also sexy in terms of talent attraction and talent retention. Excel, pens, discouragement & hesitation rather less so!

Digitalization in Procurement in less than 12 months? Talk to us!

Source Graphic. P. Raasch, 9.7.2024